LatinNews Daily - 7 November 2024

*Mexico’s government led by President Claudia Sheinbaum has announced that it will invest some US$23.4bn in the state-owned electricity company Comisión Federal de Electricidad (CFE). Of this total US$12.3bn will be for the generation of 13,240 megawatts (MW), US$7.5bn for the reinforcement of infrastructure, and US$3.6bn for the distribution of energy to homes. Presenting her government’s national strategy for the electricity sector, Sheinbaum stated that the CFE would maintain its 54% share of the domestic electricity market and would continue growing and becoming stronger “with proven financial schemes, with which we will continue to increase the number of megawatts of generation”, adding that “a very important percentage of [generation] will be from renewable energy sources”. Sheinbaum stated that, with this strategy, energy planning capacity would be recovered. She also highlighted that electricity tariffs would remain the same in real terms and subsidies would be maintained for those with few resources. Energy Minister Luz Elena González Escobar explained that the national strategy for the electricity sector was made up of four axes: strengthening the planning of the national electricity sector; advancing in energy justice (access for all); guaranteeing a robust, reliable and safe electricity system; and clear rules to ensure and increase private investment. The government estimates that by 2030 there will be a demand of 64,979 MW of electricity generation through clean energy. This comes as the new administration oversaw the passage of an energy reform last month, which bolsters the CFE among other measures.